tv The Journal Editorial Report FOX News February 4, 2012 11:00am-11:30am PST
>> this week object on the journal editorial report. big in florida is the mitt romney's path clear to the nomination or does it hold new opportunities for his rivals. as rick santorum continues his romney care takedown. the similarities to obama's health care overhaul. and the trouble that could cause the g.o.p. front runner in the fall. plus, will the president's new housing plans take struggling home owners or lose to the next big government bailout? welcome to the journal, editorial report, i'm paul
gigot. the night for the presidential nomination, to nevada where the caucus goers will decide if mitt romney's winning streak continues. after a resounding win in florida, he's playing the role of g.o.p. front runner, and taking on president obama and his rivals in tuesday night's victory speech. president obama demonizing and den greats almost every sector of our economy. i will make america the most attractive place in the world for entrepreneurs, for innovators and job creators and unlike other people running for president, i know how to to that. >> can he run on his resume' alone? let's ask. >> wall street columnist and deputy editor dan henninger, the washington columnist kim strassel and james freeman. so, kim, is romney's path to the nomination now clear?
>> no, it's not. and for the very reason you say, he cannot run on biography alone. and the nomination going to do very well. he's got a good month going ahead and mr. gingrich is going to struggle to try to catch him at this point. but in terms of the general election, he's still got a lot of problems. >> kim, let's talk about the nomination first. i mean, is he now the presumptive nominee, do you think, or how can he be stopped? >> here is the problem for mr. gingrich. if you look at the races in february. mr. gingrich is looking ahead to super tuesday, march 6th. a the lot of surgeon states, including his home state of georgia he's hoping will catapult him back into the race. he's got a lot including the states that mr. romney did well in 2000 #, maine, colorado, michigan and others he's showing strength. will the pressure be too great? can he make it all the way to march. >> i think we're in a
mysterious period, with the web and debates and hard to predict. i don't see anything that's going to stop mitt romney from getting in nomination. i mean, between the money and the organization and the fact that he now is the front runner, and i think it's that reality is beginning to sink in among republican voters, it doesn't mean they're enthusiastic, but i think he's on a path to the nomination, the question is he going to arrive at the nomination with the wind of the republican party at his back. >> if you look at exit polls, he's got work to do. he did well mopping all kinds of demographic groups and resounding victory in florida, but if you look beneath the surface of the exit polls. he still has trouble on the pop lays republican right and the tea party right broke even, and somebody evangelical still breaking even with his opponents. so, how can he rally that republican base, which is a significant part of the g.o.p.? and he needs them in november. >> he does, they're not enthusiastic.
where you see even in the polling when he's doing well among tea party groups or evangelicals and people making the practical decision that they think he can win. but all along we've been talking about this. and republicans and conservatives resigning themselves to mr. romney and especially if-- >> how does he overcome that, between now and the convention? >> well, the most important thing would be to get out there with a conservative agenda, instead of a, a vague biographical pitch that he's a smart guy and he's done well in business and therefore he knows economics. as we've he noted his economic plan is not as good as his rival's plan. >> you know, kim, some of the liberals say if gingrich decides to take this to convention as he's promising and rick santorum shows no signs of getting out. if they stay in, liberals are saying, you know, this could help romney against obama because it would make him appear to be more reasonable, and moderate. what do you think? >> that's not really his problem.
as we've been talking about, his problem right now, he does well with independents. he does well with the conservatives. his appropriate was with self-identified conservatives who are not inspired by him and he he's got to do what james does and more importantly, stop talking on president obama's concerns. the president is talking about it and mr. romney keeps falling into that trap. we have the flap this week he was talking about he can't really care about the poor. i mean, this was a bungled message and actualically what he was trying to say is he wanted economic growth. and it's determination not to only talk about his love for the middle class and plays to obama. >> paul: what do we learn about romney during the primary run so far. we've been critical, but what have we learned about his, his-- >> well, i think we've learned that he's very smart. very skilled. he's articulate, he's a fast learn her, respond quickly and a lot of energy and one thing we've learned, paul and i'm
beginning to find this quite, kind after concern. he is supposed to have this vaunted organization, and this strong team. we opened with the excerpt from that victory speech in florida, i watched it and read through it it last night and you know, it's pretty funky, it's a big moment and the the whole nation is watching and nothing special in that speech. you think someone would have reflected the time to do it. it reflects a lack of focus on the part of this super manager and i think that's reflected in some strange things he's been saying the past week. >> paul: he's defining himself with obama. this is what's wrong with obama and i'm the anti-obama. nothing transcends that and says if i win, here's the good thing i'm going to do at the end of the road and that seems to be a fundamental problem with any candidate and af got to be able to say, if you elect me, it's a better future ahead. there's no better future, it just won't be obama's future. >> in terms of what we've learned. we've learned he's not an
instinctive conservative. although he keeps saying, i don't apologize for my wealth, he still feels very defensive about it. any issue that affects tax policy, under the programs, he has the defensive reaction of someone who doesn't want to appear to be favoring the rich in any way, or promoting free economics, really. >> yeah, that could be a long-term problem for him down the road. when we come back he's promising to repeal and replace obamacare if elected. how close is mitt romney's massachusetts reform plan to president obama's signature legislation? is rick santorum right that it will hurt him in the fall campaign. specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person abouter care.
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>> paul: that was rick santorum at last week's debate in jacksonville. drawing parallel to mitt romney's health care reform and president obama's overhaul. mr. romney for his part denied the similarities and says he'll repeal obamacare if he's elected in november. just how alike are the two plans and can he run against president obama in the fall? grace marie turner is the president of the galen institute. and joins me from washington. great to have you here. paul, thank you. >> okay. so, just how similar are the two programs. mitt romney says they're not. what are they? >> you know, senator santorum was quoting a steady from the liberal families usa. but lists 16, actually, not 15. and key components that are almost identity between obamacare and romney care, everything from health plans providing expansion of
medicaid coverage, the exchanges in individual mandates, to a level of benefits that both plans have to offer and insists it's just not credible, paul. when romney says that, i'm going to repeal obamacare, i hate this plan and yet, i want to tell the american people what i do and said, and i love romney care. so, the voters are understandably confused. >> all right, romney says himself. i didn't have 500 billion dollar worth of medicare cuts and this was a state program, and the states have a right to experiment and you expected, you liked it in massachusetts and that's very different than the federal program. you're arguing that that, those differences aren't going to sell. why not? >> the same person designed both plans, john mcdunna who has called obamacare, romney care with three more zeros, instead of millions we're talking billions and when romney says, well, we didn't
cut medicare states have no authority over medicare, that's a bogus claim. and he says, well, we didn't raise taxes, well, they've pushed the tax increases on the federal taxpayers because it's an expansion of medicaid. >> paul: this hasn't, however, so far and some of us and i would include myself in it, thought this would hurt romney during the primary season, but it doesn't seem to have done so. why do you think it's suddenly going to hurt him in the general election, if it hasn't made in difference in the primary? >> well, i think it has made a difference. i think that this is one of the reasons that people have been looking for the conservative candidate in this election. which is one of the reasons that romney continues to not, except in florida, not even get close to 50% of the vote. people don't like obamacare. and that was one of the points that brought, maybe we just can't give this away. and romney can't defend this.
he said that an individual mandate was the right thing for massachusetts, only 15% of the american people think that the federal government should be able to tell us that we must purchase government assigned health insurance with our own money or get a fine and he's got to defend that. >> paul:'s not going to say it's a mistake. he's not going to say i made a mistake and i was wrong. he doesn't want to be seen as a flip-flopper. what should he do now, to make an issue that's to his advantage in november. >> i think he needs to change the conversation. when he says, i'm-- of course we want to repeal and replace obamacare, and i'm crowd to say what i would replace it with. well, give us the next level. you look at his web and he's got some bullet points and he's got to change the conversation around things from saying, i'm going to let
the states implement obamacare any way they want to, to saying this is what my plan would be, pan he's got the right components, but he's just got to see it, get off the romney care and start talking in specific ways about a positive plan. >> paul: he says you can use an executive order to repeal big parts of obamacare, is that right or is that just-- do you really need overwhelming majorities in congress and do it through legislation? >> you have to repeal the key components and in fact, the congressional research service actually did a study and said, you cannot, by executive order, repeal the key components of obamacare, you can't repeal this huge new entitlement program with all of its massive subsidies and huge expansion of medicaid that the states are fighting. and 500 billion dollars in cuts to medicare, the the independent payment advisory board and rationing board.
all of these key components and then the mandates, the state mandates, you can't repeal those by executive order so he's got to get his messaging straight. that's not going to hold up and whether obama challenges him or not. >> paul: right. >> this super pacs absolutely will. >> paul: all right, got to make this a major issue and a major theme to the the campaign. thanks for being here. >> thank you, paul. >> paul: wh en we come back, president obama unveils another plan to save struggling home owners. could his next plan [ male announcer ] juice drink too watery? ♪ feel the power my young friend. mmm! [ male announcer ] for excellent fruit and veggie nutrition... v8 v-fusion, also refreshing plus tea.
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but it is wrong for anybody to suggest that the only option for struggling responsible home owners is to sit and wait for the housing market to hit bottom. >> paul: conceding that earlier administration efforts to help struggling home owners had fallen short. president obama this week called on congress to pass legislation that would make it easier for more borrowers to refinance mortgages, creating a new program through the federal housing administration, that would have the government guarantee the new loans and assume the risks should borrowers default. this, despite a recent audit that found a 50% chance that the fha would run out of money and require a taxpayer bailout. and mary kissle joins us with more, mary, how big a threat to taxpayers is the expansion of the fha? >> it's a huge threat. fha is basically the new fannie and freddie. if it were a private company, it would be insolvent. you're looking at a company
that went from 350 billion dollars worth of exposure in 2007, to over a trillion today. >> over half, close to half of all american mortgages? >> around, around a third of new single family backed mortgages. but, the government says to the fha, you have to have the 2% capital reserve and they have less than 1/2 a percent. and that's, it keeps falling every time they report. so, the idea that you would put more risk on to fha, which is 100% taxpayer backed is ludicrous. >> well, here is what the administration would say, i know you want to ask about it, he they would say, look, there isn't enough private financing since the housing market for the crash, what we have to do, we have to have a government agency come in and do it and the fha is available, neve expertise, what's wrong with that argument. >> well, what's wrong with the argument. the longer you have the government in the market. the more the the private sector shrinks, when do you start to roll it back. we had a great example of this
last year in october he when the he so-called loan limits, which is a technical term for how much fannie and freddie and the fha can back. >> on any given mortgage. >> on any given mortgage. they fell and immediately the private market came back in and boom, in november. a bipartisan coalition in congress says, you know what? we didn't like that, let's move them back up and let, fannie, and freddie back mcmansions. the longer this happens, the more you'll see the private sector. >> president obama must figure, james, nobody knows what the fha is really. all they know i'm proposing something that sounds good and it's going to help, i'm going to help you desperate home owners now, a second term thing if fha has a program. am i being too cynical. >> no, certainly an appeal and there are houses and sitting on losses and there's, i guess, a desire to help those people, pan subsidize them further, but we should point out here that the taxpayer exposure is not just the risk that mary is describing, it's
not theoretical. and the point happens with a five to ten billion dollar tax and it's applied to banks. so it's a transfer of wealth right off the bat from shareholders, probably some customers ever banks, end up paying for the new tax, but funds this subsidy for people who are underwater. >> how likely, is the pass? >> it's not going to pass and one more point on changes to the risks. these are basically no dock loans. it's the-- >> what's a no dock. >> no document. >> what the administration is saying, we are going to let you refinance through the taxpayer backed agency and to do it you have to meet minimum criteria, employment history, well, we don't need to look at that. a formal appraisal of the home. now, forget about that. and and they're not just taking on more risk, they're also degrading the standards that they're using to do this. >> paul: and you know, if you look back, you say, isn't this what got us into this mess a few years back? so what, explain the politics
of this from the president's point of view, why is he doing this now? >> the politics were in the remarks that the president made on screen. if we can't wait for the housing market to hit bottom. who said that? >> mitt romney said that last october. >> he said you could, he said we do want it to hit bottom. >> yeah. >> if you don't hit bottom, you can't go back up. >> right. >> you have the clear market and supply of horses have to clear. >> the president also said this is the sort of program that makes middle class familiar ris whole. who is running on the middle class? mitt romney. let me identify the four states in order that have the most mortgages underwater nevada, florida, michigan, four of the most important states, and all about politics, you're right after november i think the fha thing is going to float out on a congressional wave. >> at least it draws attention to an agency that's 100% taxpayer backed, that has serious delinquencies, 9.7%
and trillion dollar property and keeps going up. >> paul: we have to take one more break. when we come back, hits and misses of the week. and who od the yummy cereal? yummy. [ woman ] lower cholesterol. [ man 2 ] yummy. i got that wrong didn't i? [ male announcer ] want great taste and whole gin oats that can help lower cholesterol? honey nut cheerios. ♪ [ male announcer ] no one just hands you the title, most advanced techlogy in its class. it needs to be earned. earned with smartbeam head lamps. earned with vented temperature control seats. earned with an 8.4-inch touch screen. and if you're driving one, you know what it means to earn something. ♪
>> time for hits and misses of the week. mary, first to you. >> i'm giving a hit or i should say a like, to network company facebook that files a tweet for the michiginitial pub offering. this started in a college dorm and went on to silicon valley and funded by private investors and went on to create a lot of wealth and jobs all without government help. >> paul: sounds like a thousand millionaires. >> a thousand millionaires. if we could only lift the tax and regulatory business maybe we could create a thousand for companies like that. >> paul, i'm not friending warren buffett the berkshire hathaway ceo.
at myth as a buffet rule to tax him and his rich friends. they're paying capital gains because he's giving his wealth to the family controlled trust in the gates foundation. basically the buffet rule is hardly going to affect warren buffett although may hit a lot of the the rich friends he talked about. >> paul: all right, james. kim. >> a hit for susan g komen for the cure, the charity now stopped giving money to planned parenthood and list add lot of boring reasons for stopping the grants, but in the case the huge backlash among liberals claiming it's political. not giving money because planned parenthood also does abortions. whatever the reasons, it was the right one. millions of americans have taken part in komen events thinking they're raising money for a cure for a cancer not women's issues, this is called mission creep. >> paul: thank you, kim. if you have your own hit miss, ger@foxne